Advanced Power has closed a US$899 million project financing for the development of the of the 700 MW Carroll County energy project in Ohio.
Specifically, Advanced Power has closed financing with its partners TIAA-CREF, Chubu Electric Power Company, Ullico and Prudential Capital Group providing US$411 million in equity commitments and BNP Paribas, Credit Agricole and eight other commercial banks providing US$488 million in senior secured credit facilities
Located in northeastern Ohio, Carroll County Energy will be a 700 MW combined-cycle natural gas electric generating facility that will sell energy, capacity and ancillary services into the PJM market. The project is proximate to the Utica and Marcellus natural gas production, as well as AEP's 345 kV transmission lines and Kinder Morgan's Tennessee Gas Pipeline system. This strategic location is an important competitive advantage of Carroll County Energy.
The facility will feature two GE 7F.05 gas turbines and a D602 steam turbine. Bechtel is building the project under a turnkey construction contract. EthosEnergy will operate the facility and Advanced Power will remain as the construction and asset manager.
Advanced Power CEO Thomas Spang stated:
"The project has received strong support from Carroll County and other key stakeholders in Ohio. From the beginning it was the project's goal to work closely with the community and to bring in the strongest partners in the industry -- this milestone demonstrates the success of that strategy."
Mario Maselli, Senior Director within the Energy & Infrastructure Investments team at TIAA-CREF, commented:
"As we pursue a steady, diversified stream of returns on behalf of our investors, this project represents exactly the type of opportunity our dedicated energy infrastructure team actively seeks out. A strong management team, consistent long term returns and a positive economic impact are important criteria in our investment decision making process."
BNP Paribas (Left Lead, Administrative Agent) and Credit Agricole Corporate and Investment Bank (Right Lead, Syndication Agent, Hedge Coordinator) served as Coordinating Lead Arrangers and Joint Bookrunners in forming a syndicate of 10 financial institutions to finance the project. Whitehall Capital served as the sponsor's financial advisor. Morgan Lewis & Bockius served as project counsel.